16 October 2012, Sweetcrude, Lagos – Local and international financial market update.
Nigerian Foreign Exchange- The Central Bank offered USD 180 million and sold USD 162.22 million at yesterday’s CBN auction. They maintained a marginal rate of 157.3075 (including the 1% commission).
Nigerian Bonds – Ahead of the auction on Wednesday some demand filtered into the market on the 16.39%, 2022 and 15.10%, 2017 with the 16.00%, 2019 being sold off. We will likely see volatility ahead over the next two days as the auction expectations play out in the secondary market.
Nigerian Treasury Bills – The new one- year was listed on Monday and traded down 20bps, demand was weak in general, most of it feeding into short dated bills
Nigerian Money Market – OBB and unsecured O/N rates are averaging 11.00% & 12.00% to close on Monday.
ZAR: South Africa’s rand was a touch firmer against the dollar but remained vulnerable to labour unrest that has sent the currency plunging over the past several weeks. Kumba Iron Ore late on Monday fired more than 100 strikers who halted operations at its giant Sishen mine and threatened to destroy equipment worth hundreds of millions of dollars.
JPY – The dollar hit a one- month high against the yen and tested a key resistance level after the US retail sales data came in stronger than expected. The dollar rose 0.3 percent to 78.88 yen. Earlier, it rose to as high as 78.91 yen on trading platform EBS, the dollar’s highest level since Sept 19.
CNH: The yuan edged up in light trading after three straight days of successive record highs, as traders and clients grew cautious as the currency approached 6.25 per dollar. The yuan forward market continued the trend of moving closer to the spot price as spreads narrowed. The on-shore one year forward contract changed hands at 6.4048, shrinking its spread against the spot price by over two basis points since Oct 10.
Indicative Currency Exchange Rates
EURUSD 1.2965 1.3025
GBPUSD 1.6070 1.6120
USDJPY 78.65 79.15
USDCHF 0.9275 0.9325
GBPEUR 1.2360 1.2410
USDZAR 8.7300 8.7400
USDNGN 157.25 157.75
JPYNGN 1.9860 2.0060
CHFNGN 168.40 170.30
EURNGN 203.00 206.00
GBPNGN 251.00 255.00
ZARNGN 17.01 19.01
Brent futures rose above $ 116, underpinned by supply concerns after the European union slapped more sanctions on Iran, while ample supplies and healthy inventory in top consumer the United states capped gains.
NIBOR (%) LIBOR (%)
O/N 11.4583 USD 1 month 0.21400
7 Day 12.2500 USD 2 month 0.27350
30 Day 13.6667 USD 3 month 0.33025
60 Day 14.0417 USD 4 month 0.41410
90 Day 14.3750 USD 6 month 0.58990
USD 12 month 0.92900
Y/Y Consumer Inflation August 2012 : 11.7%
FX Reserves: 10 October 2012 (USD bn) 41.60
Source: Reuters Guardian, Bloomberg, Central Bank of Nigeria, Financial Market Dealers Association Standard Chartered Bank Nigeria
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USD/NGN 157.48/58 157.28/38 157.43/53 157.30/40